James Is Concerned That If He Purchases a Fixed Immediate

question 11

Multiple Choice

James is concerned that if he purchases a fixed immediate annuity his funds will be tied-up and not accessible if an emergency arises.His insurance agent said that a rider could be attached to his annuity to address this concern.The rider is a(n)

• A)partial cash withdrawal rider.
• B)return of premium rider.
• C)guaranteed purchase option rider.
• D)waiver-of-premium rider.

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Definitions:

Focal Date

A specific point in time that serves as a reference or target for events or operations.

Equivalent Payment

A term related to finance that typically involves finding a payment amount that equates to an equal value under different conditions.

Scheduled

Planned or organized for a certain time or date.

Focal Date

In finance, it refers to a specific point in time used as a reference or base date for calculating the value of financial instruments or for determining the timing of cash flows.